Transitioning to the AustralianSuper Pension. for IBM Super Fund Pension members

Transcription

1 Transitioning to the AustralianSuper Pension for IBM Super Fund Pension members

2 Important note This material is of a general nature and does not take into account your personal objectives, situation or needs. Before making a decision about AustralianSuper, consider your financial requirements and read our Product Disclosure Statement, available by calling or at Investment returns are not guaranteed as all investments carry some risk. Past performance gives no indication of future returns. Statements made by AustralianSuper members have been reproduced with the member s consent and this consent has not been withdrawn as at the date of this presentation. AustralianSuper Pty Ltd ABN AFSL Trustee of AustralianSuper ABN

3 Agenda > Introducing AustralianSuper > The transition process what to expect > Your investment options > Taking action and communications > Where to get help 3

4 AustralianSuper AustralianSuper is one of Australia s largest industry funds: > $46 billion in funds under management as at 30/6/2012 > More than 1.9 million Australians are members > Over 170,000 employers The Fund has the economies of scale to: > keep costs low > explore new innovative investment opportunities > deliver new products and services Highest possible ratings from major rating agencies 4

5 AustralianSuper divisions AustralianSuper $46.6 billion 1.9 million members Corporate Industry Personal Pension Commenced 1/1/08 > 37,700 members 66 employer subplans > IBM Employees > 1.79 million members > 176,900 employers > 55,700 members > IBM Retained & Spouse members > 9,800 members > IBM Pension members Fund data current as at 30 June

6 Where does AustralianSuper stand Ranked by $ size Rank Fund name Fund type Net assets at 30 June AMP/AXA Retail $66.2b 2 MLC/NAB Retail $59.8b 3 BT/Westpac Retail $57.6b 4 Colonial/CBA Retail $54.0b 5 AustralianSuper Industry $43b Source: APRA fund-level report 2011, issued February

7 Where does AustralianSuper stand Ranked by net fund flows* Rank Fund name Fund type Net contribution flows 1 AustralianSuper Industry $4.3b 2 Colonial/CBA Retail $2.9b 3 BT/Westpac Retail $2.8b 4 Qsuper Public sector $2.4b 5 AMP/AXA Retail $2.4b * Contributions, rollovers and benefit payments Source: APRA fund-level report 2011, issued February

8 The transition process What can you expect? Subject to legal sign-off and approval by the Trustee of the IBM Australia Limited Superannuation Fund, the transition will occur on 1 November > Your benefit will be transferred to your AustralianSuper Pension division via Successor Fund Transfer > Your 1 st payment from AustralianSuper will be on the 15 th November 2012 > Your existing nominated beneficiaries will transfer to your new account > Your investment strategy will be mapped to the most similar AustralianSuper option > You will receive a new membership number and PIN 8

9 Transition Investments Your investment allocation in AustralianSuper will be mapped in accordance with your current investment strategy; IBM Super Plan Option AustralianSuper Option High Growth High Growth Balanced Balanced 50/50 Moderate Conservative Balanced Stable Conservative Stable Cash Cash Australian Shares Australian Shares International Shares International Shares Property Property Fixed Interest Diversified Fixed Interest 9

10 Transition - Timeline 10

11 The transition process limited service period During transition, there will be a period of time when online transactions and access to your account will be temporarily unavailable > This period is expected to be from the 15 th October until mid-december > There will be no disruption to your monthly pension payments > Investment switches applying to both future contributions and existing account balances can be made during this period by completing an investment switch form 11

12 Communications You will receive By the end of September > A Significant Event Notice (SEN) from the Trustee of the IBM Super Plan > A Transfer Guide from AustralianSuper Nov/Dec. > A Product Disclosure Statement (PDS) from AustralianSuper which outlines the features and benefits of the AustralianSuper Pension Plan 12

13 AustralianSuper pension fees Administration fee (Deducted from your account) Withdrawal fee Investment fee (Deducted from gross investment earnings) $1.50 per week ($78pa.) 0.22% pa. of your account balance (capped at $1,100) $35 In 2011/12, the fee ranged from 0.07% pa. to 0.69% pa. of your account balance depending on the investment/s options selected In 2011/12, the investment management fee for the AustralianSuper Balanced option (default) was 0.60*%. * For the Balanced option for the 12-months to 30 June Investment fees will vary from year to year and according to the investment options you choose 13

14 AustralianSuper pension fees reduce from 1 January 2013 Administration fee (Deducted from your account) Withdrawal fee Investment fee (Deducted from gross investment earnings) $1.50 per week ($78pa.) 0.11% pa. of your account balance (capped at $750pa) $35 In 2011/12, the fee ranged from 0.07% pa. to 0.69% pa. of your account balance depending on the investment/s options selected In 2011/12, the investment management fee for the AustralianSuper Balanced option (default) was 0.60*%. * For the Balanced option for the 12-months to 30 June Investment fees will vary from year to year and according to the investment options you choose 14

15 Flexibility You decide the important aspects of your account, such as: > Payment amount - how much you receive > Payment frequency - how often you receive payments > Investment choice - how your account is invested > Funding method - how your payments will be deducted PLEASE NOTE YOU WILL NOT BE ABLE TO MAKE CHANGES TO YOUR PENSION PAYMENTS UNTIL THE TRANSITION IS COMPLETED IN FEBRUARY

16 Pension Payments > There is a minimum payment each year > Minimum payment equals percentage factor by account value at 1 July > Year means 1 July to 30 June > No minimum payment required if pension starts on or after 1 June > A temporary reduction 25% applies to the percentage factor in 2012/13 Age of Beneficiary Percentage Factor Under or more

17 Communications: On-going Members will receive: > A consolidated statement at 30 June each year > An annual tax statement, for members under 60 years > A PAYG payment summary in relation to pension payments, for members under 60 > By 14 July confirmation of new annual pension payment > Centrelink/DVA schedules (Mar/Sept)* * Will be sent directly to Centrelink. 17

18 Tax on pension payments For members 60 and older > Pension payments are tax free For members 55 to 59 > Pension payments are treated as income > Members pay tax on pension payments at their marginal tax rate > Members are entitled to a 15% tax offset on the taxable component of their pension payment 18

19 Investment options can include combinations of different investments Shares Property Infrastructure Fixed interest Cash 19

20 AustralianSuper infrastructure assets Port of Brisbane Pacific Hydro - Portland Eastern Distributor - Sydney Southern Cross Station - Melbourne Perth Airport Gdansk British Telco 20

21 Highs and lows of asset class returns Last 20 financial years to 30 June 2012 Investments can go up or down. Past performance is not necessarily indicative of future returns. Source index data: Australian shares S&P/ASX 300 (All Ordinaries before 1/4/2000); International Shares MSCI All Countries World ex Australia NET WHT (unhedged): Direct property Mercer/IPD Australian Pooled Property Fund Index; Australian bonds UBSA Composite Bond All Maturities; International bonds Citigroup WGBI hedged into AUD; Cash UBSA 90 Day Bank Bill 21

22 22 Short-term risks are different to long-term risks

23 AustralianSuper s Balanced option Asset mix allocation as at 31 mix December as at June 2012 Current strategic asset allocation ranges shown in brackets Fixed Interest 13% [0-25%] Cash 4% [0-15%] Private Equity 5% [0-10%] Infrastructure 13% [0-30%] Australian Shares 32% [20-45%] Direct Property 11% [0-30%] Plus: Absolute return strategies [0-10%] International Shares 22% [10-40%] 23

24 Risk levels of Balanced option Time invested Short-term volatility (if savings are required in 5 years or less) Risk level High Medium term volatility and inflation (if savings are required after 5 to 20 years) Medium Long term inflation (if savings are required after 20 years or more) Low 24

25 Investment performance AustralianSuper s Balanced option to 30 June 2012 (average % pa) % return pa 10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% -1% -2% -3% 9.31% 7.01% 6.39% 6.32% 5.40% 0.98% 0.45% N/A 0.02% -0.20% Since inception 10 years 5 years 3 years 1 year AustralianSuper: Calculated historical returns Benchmark: SuperRatings SR50 Balanced (60-76) Index 25

26 More investment options PreMixed High growth Balanced (default option) Sustainable Balanced Indexed Diversified Conservative Balanced Stable Capital Guaranteed DIY Mixed Australian Shares International Shares International Shares - Hedged Australian Sustainable Shares International Sustainable Shares Property Australian Fixed Interest International Fixed Interest Diversified Fixed Interest Cash 26

27 Where can I get more information? - transition Transition Website > Copy of this presentation > Pension Transfer Guide (when available) > Investment choice and binding nomination forms > Frequently asked questions 27

28 On-going information Via mail (available online too) > Annual statement > Member bulletin Your Super (March & September) Online: > Account balances > Calculators > Investment performance & switching Via > Monthly investment bulletin > Quarterly Member Investment Update 28

29 Where can I get advice at AustralianSuper? Online: Over the phone: In person: Meet with an IFFP financial planner dedicated to AustralianSuper Our Financial Education & Advice Team (FEAT)* can help with: > Your investment options > Putting extra savings into super > The AustralianSuper Pension > Transition to Retirement * FEAT services are provided to AustralianSuper members by Superpartners Pty Ltd ABN AFSL Mon to Wed 8.30am to 8.00pm, Thurs & Fri 8.30am to 6.00pm AEST In person services provided by IFFP (Industry Fund Financial Planning), a division of Industry Fund Services Pty Ltd AFSL ABN These services are provided by third parties. AustralianSuper does not recommend, endorse or accept responsibility for these services. Terms and conditions apply these should be obtained from the relevant third-party organisations. AustralianSuper does not accept liability for any loss or damage caused by the services provided by third parties. AustralianSuper may invest in third parties but does not receive any commissions from these organisations as a result of members using their services. 29

30 30 Thank you